Want to own the stock's exact price behavior without actually buying the stock? Buy an ATM call, sell an ATM put, same strike, same expiry. You've just built a synthetic version of holding 100 shares.
Synthetic Long is a uptrend (bullish) options trading strategy (2 legs) engineered for high / unlimited risk profiles in neutral iv market environments.
Unlimited
Substantial (Strike Price - Net Credit)
ATM Strike + Net Debit (or - Net Credit)
| Action | Contract Type | Strike Selection | Quantity |
|---|---|---|---|
| BUY | CALL | ATM Strike | 1x |
| SELL | PUT | ATM Strike | 1x |
You're bullish, but you don't want to pay full price for a naked call and you're okay capping your profit in exchange for cheaper entry. Buy one call, sell a higher one to fund it — simple as that.
🔼 Uptrend (Bullish)This is the trade for when you think a stock is about to make an explosive move up — not just drift higher. Sell one call near the money, buy two further out. Cheap or even free to put on, and it pays big if the move actually happens.
🔼 Uptrend (Bullish)The first trade every options trader learns, and honestly still one of the best when you're genuinely convinced a stock is going up. You risk only what you pay, and there's no ceiling on the upside.
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